When should fixed and variable monthly budgeted expenses first be planned?
at the end of each month
. day by day during the month. at the start of each month.
When should fixed and variable monthly budgeted expenses first be?
When should fixed and variable monthly budgeted expenses first be planned?
at the end of each month
. day by day during the month. at the start of each month.
What is most likely the reason variable expenses should be planned after fixed expense?
discretionary money. What is most likely the reason variable expenses should be planned after fixed expenses?
Fixed expenses are required and constant, but variable expenses are more flexible
. … uses money in a way that will increase its value in the future.
How might variable expenses change a great deal at different times of year?
Heating and cooling costs might vary considerably
. Income taxes and withholdings may increase or decrease. Car loan payments become higher in certain seasons.
What does the 50 30 20 rule mean?
Senator Elizabeth Warren popularized the so-called “50/20/30 budget rule” (sometimes labeled “50-30-20”) in her book,
All Your Worth
: The Ultimate Lifetime Money Plan. The basic rule is to divide up after-tax income and allocate it to spend: 50% on needs, 30% on wants, and socking away 20% to savings.
What is most likely the reason variable expenses should be?
a variable expense. … What is most likely the reason variable expenses should be planned after fixed expenses?
Fixed expenses are required and constant
, but variable expenses are more flexible.
Which is the best way to achieve long term financial goals?
Which is the best way to achieve long-term financial goals?
Save more money from net income
.
What is the simplest change that can be made to the budget?
What is the simplest change that can be made to the budget to produce more savings next month?
Decrease food expenses
.
When planning a budget What is the biggest consideration?
- When revising a budget, it is important to make choices that allow you to continue …. …
- What is the first step in the decision-making process? …
- When planning a budget, the biggest consideration should be the. …
- Simon bought a computer and made monthly payments.
What part of income should someone take savings?
Here's a final rule of thumb you can consider:
at least 20% of your income should
go towards savings. More is fine; less may mean saving longer. At least 20% of your income should go towards savings. Meanwhile, another 50% (maximum) should go toward necessities, while 30% goes toward discretionary items.
What are the main purposes of a budget select three options?
Terms in this set (3) A budget allows you to meet your personal goals with a system of saving and wise spending. Main purposes are
Budget are Live within your income, Make wise buying decisions, Avoid credit problems, Plan for financial emergencies, Develop money management skills, Achieve your financial goals
.
Why is net income lower than gross income fixed spending?
Both gross profit and net income are found on the income statement. Gross profit is located in the upper portion beneath revenue and cost of goods sold. Net income is found at the bottom of the income statement
since it's the result of all expenses and costs being subtracted from revenue
.
What is short term financial goal might include saving for?
A short-term financial goal might include saving for
a down payment on a house
.
What is the 70/30 rule?
The 70% / 30% rule in finance helps many to spend, save and invest in the long run. The rule is simple –
take your monthly take-home income and divide it by 70% for expenses, 20% savings, debt, and 10% charity or investment, retirement
.
What is the 70 20 10 Rule money?
Using the 70-20-10 rule,
every month a person would spend only 70% of the money they earn, save 20%, and then they would donate 10%
. The 50-30-20 rule works the same. Money can only be saved, spent, or shared.
What is a 20 10 rule?
How Much Can You Safely Borrow? (The 20/10 Rule) 20:
Never borrow more than 20% of yearly net income* 10: Monthly payments should be less than 10% of monthly net income*
